KOSDAQ · 078890 · Electronics · ₩078890

Kaon Group가온그룹

078890 · KOSDAQ · ₩078890 · 가온그룹

₩3,860▲ ₩90 (2.39%)End-of-day · Oct 28, 2026 · End-of-day prices.

Trade

Sell Buy

Valuation model · Discounted cash flow (DCF)

We use a 5-year discounted cash flow: the value of the cash the business is expected to produce, in today's money.

Fair value per share

With these assumptions the model gives no positive value.

Enterprise value: ₩53B
Equity value: −₩94B
WACC: 5.6%

Model estimate based on the assumptions shown. Not a price target and not a buy or sell signal. This is not financial advice.

Why the model and the price differ

The model gives no positive value at these assumptions. What we can see:

To match today's price of ₩3,860, the model needs an operating margin of 3.5% every year (it uses 1.6%).
Margins ranged from −8.6% to 5.3% over the last 5 years, so this is a cyclical business. The model uses the average; the price may be set by where the cycle is now. Try the margin fade option.

Treat the model as a starting point: change the assumptions to the story you believe, and compare with the multiples check below.

Bear / Base / Bull

Bear: —
Base: —
Bull: ₩9,774; +153.2%

Bear: revenue growth 3 points lower every year, EBIT margin 2 points lower, WACC 1 point higher. Bull: the opposite.

Assumptions

Cycle options

Margin path

Every year uses the cycle-average margin (1.6%).

Revenue growth

Revenue growth, year 1-5.4%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-5.4% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 2-3.3%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-5.4% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 3-1.2%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-5.4% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 40.9%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-5.4% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 53%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-5.4% a year, annual reports), fading to 3% by year 5.

Business

EBIT margin1.6%
Operating profit as a share of revenue.
Default: through-the-cycle average of the last 12 months and the last 5 annual reports' operating margins.
Tax rate27.5%
Share of operating profit paid as corporate tax.
Default: Korea's top corporate tax rate (25%) plus 10% local income tax.
Depreciation & amortisation1.6%
The non-cash cost of wearing out equipment, added back to cash flow (% of revenue).
Default: not in the statements, so 80% of capital spending (most spending replaces equipment that wears out).
Capital spending2%
Money spent on factories, equipment, software and other long-term assets (% of revenue).
Default: average of the last 3 annual reports (cash flow statements; equipment and intangibles).
Working capital36.7%
Stock and unpaid customer bills, less unpaid supplier bills, as a % of revenue. Each year's extra revenue ties up this much more cash.
Default: working capital (current assets less cash and deposits, minus current liabilities other than borrowings) as a share of revenue, averaged over the last 3 years.

Discount rate

Terminal growth2%
How fast cash flows keep growing every year after year 5.
Default: about Korea's long-run inflation plus real growth.
Risk-free rate4.08%
Yield on Korea's 10-year government bond: the return with almost no risk.
Default: Korea Treasury Bond 10-year yield on 2026-10-29.
Beta0.9
How much the share moves when the market moves: 1 means just like the market.
Default: 105 weeks of weekly returns against KOSPI (official index); raw beta 0.86, adjusted toward 1 and kept between 0.6 and 2.0.
Equity risk premium5.5%
The extra return investors want for owning shares instead of bonds.
Default: a typical premium for Korean shares.
Cost of debt (before tax)5.58%
The interest rate the company would pay to borrow.
Default: the 10-year yield plus a 1.5% credit spread.

Starting point

Revenue (TTM to H1 2026): ₩506B
Net debt (borrowings and leases − cash and deposits): ₩150B
+ Stakes and investments: ₩3.5B; Associates, long-term financial assets and deposits (book value)
Shares: 18,424,943
Share price: ₩3,860
Market cap: ₩71B

TTM = trailing 12 months: the last four reported quarters added together. "TTM to H1 2026" is the 12 months up to the latest quarterly or half-year report (H1 = to the end of June). Year 1 grows from there.

Past years and projection

Grey columns are reported results from the annual reports (after-tax EBIT at the model's tax rate), so you can check the growth and margin assumptions against the past. Years 1–5 are the model.

	FY2023	FY2024	FY2025	Year 1	Year 2	Year 3	Year 4	Year 5
Revenue	₩536B	₩489B	₩518B	₩478B	₩463B	₩457B	₩461B	₩475B
Growth	−12.2%	−8.8%	5.8%	−5.4%	−3.3%	−1.2%	0.9%	3.0%
EBIT	−₩19B	−₩42B	₩13B	₩7.7B	₩7.4B	₩7.3B	₩7.4B	₩7.6B
EBIT margin	−3.5%	−8.6%	2.4%	1.6%	1.6%	1.6%	1.6%	1.6%
After-tax EBIT	−₩14B	−₩30B	₩9.1B	₩5.5B	₩5.4B	₩5.3B	₩5.3B	₩5.5B
+ Depreciation	—	—	—	₩7.7B	₩7.4B	₩7.3B	₩7.4B	₩7.6B
− Capital spending	₩6.2B	₩13B	₩11B	₩9.6B	₩9.3B	₩9.1B	₩9.2B	₩9.5B
− Working capital	₩27B	−₩99B	₩19B	−₩10B	−₩5.8B	−₩2B	₩1.5B	₩5.1B
Free cash flow	—	—	—	₩14B	₩9.3B	₩5.5B	₩2B	−₩1.5B
Discount factor	—	—	—	0.947	0.896	0.848	0.803	0.760
Present value	—	—	—	₩13B	₩8.3B	₩4.7B	₩1.6B	−₩1.1B

Terminal value ₩35B, worth ₩27B today: 50% of enterprise value. It assumes spending settles at 110% of depreciation once growth slows to the terminal rate.

Cross-check: what the market has paid before

For cyclical businesses, analysts check a DCF against the multiples the stock has traded at through past cycles. Price / book is the usual anchor for them: P/E looks highest at the bottom of a cycle, when earnings are smallest, and lowest at the top. The price each band would give today:

	Low	Typical	High
Price / book (book value ₩7,326 a share)Now 0.53×	₩3,4230.47×	₩4,5270.62×	₩9,1561.25×

Low, typical and high are the 10th percentile, middle and 90th percentile of month-end multiples since 2021, each against the latest report out by then, per share at today's share count; loss years and P/E above 100 are left out. Run-rate earnings are one quarter × 4, not a forecast. Model estimate based on the assumptions shown. Not a price target and not a buy or sell signal.

Sensitivity

Fair value per share as two inputs change; the middle is the current case.

WACC ↓ · Terminal growth →	1.0%	1.5%	2.0%	2.5%	3.0%
4.6%	—	—	—	—	—
5.1%	—	—	—	—	—
5.6%	—	—	—	—	—
6.1%	—	—	—	—	—
6.6%	—	—	—	—	—

Now (TTM)

Market cap: ₩71B
Enterprise value: ₩221B
P/E: 11.5×
P/B: 0.5×
P/S: 0.1×
EV/EBITDA: —
Dividend yield: 1.8%

Over time (at each year end)

	2025	2024	2023	2022	2021
Price	₩5,830	₩2,975	₩5,040	₩7,670	₩17,550
Market cap	₩107B	₩55B	₩93B	₩141B	₩323B
P/E	16.1×	—	—	13.0×	15.1×
P/B	0.8×	0.5×	0.5×	0.7×	1.8×
P/S	0.2×	0.1×	0.2×	0.2×	0.6×
EV/EBITDA	—	—	—	—	—
Dividend yield	1.2%	—	—	—	—

Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
Kaon Group	11.5×	0.5×	0.1×	—	1.8%
Samsung Electronics	9.5×	2.5×	2.9×	—	0.7%
LG Electronics	25.3×	1.0×	0.3×	—	0.8%
Hanwha Vision	17.0×	2.1×	1.1×	—	0.0%
RFHIC	41.3×	3.7×	6.7×	—	0.8%
KMW	—	5.0×	8.1×	—	0.0%
Intellian Technologies	13.4×	2.0×	1.6×	—	0.4%
Similar companies (median)	17.0×	2.3×	2.3×	—	0.5%

Calculated from end-of-day prices and filed financial statements. Not a recommendation. This is not financial advice.

Also known as: Kaon Group / 가온그룹 / 078890 / KRX:078890

Source: KRX statistical information